Libya’s National Oil Corp (NOC) has announced the reopening of two of the country’s biggest oil fields as it plans to almost double output in 2017.
According to NOC, the pipelines linking the Sharara oil field to Zawiya refinery, and the El-Feel deposit to the Mellitah energy complex were reopened at the town of Rayayina. The reopening of these fields will help Libya boost oil production by 175,000 barrels a day in one month and 270,000 barrels a day within three months.
“I welcome the statement by the Rayayina Patrols Company of the Petroleum Facilities Guard, Western Branch, announcing lifting of the blockade on all the pipelines. There were no payoffs and no backroom deals. For the first time in nearly three years all our oil can flow freely. I hope this marks the end of the use of blockade tactics in our country,” NOC Chairman Mustafa Sanalla said.
The Sharara oil field is operated by a joint venture between NOC and a group of companies including Spain’s Repsol SA, Total SA, OMV AG and Statoil ASA. The field has an output capacity of approximately 330,000 barrels a day, while the El-Feel is operated by a joint venture between ENI SpA and NOC with a production of about 90,000 barrels a day, Bloomberg reports.
Libya's oil production has been affected by conflict and political disputes for the past three years. National output increased recently to 600,000 bpd but remains far below the over 1.6 million bpd being producing before the 2011 uprising. It is aiming for a production of 900,000 barrels a day by the end of this year and about 1.1 million barrels in 2017.
Any quick recovery in Libyan output could slow down OPEC’s efforts cut their output to ease oversupply and increase prices.
Anita Fatunji